An overset grid thin-layer Navier-Stokes code has been extended to include dynamic motion of helicopter rotor blades through relative grid motion. The unsteady flowfield and airloads on an AH-IG rotor in forward flight were computed to verify the methodology and to demonstrate the method's potential usefulness towards comprehensive helicopter codes. In addition, the method uses the blade's first harmonics measured in the flight test to prescribe the blade motion. The solution was impulsively started and became periodic in less than three rotor revolutions. Detailed unsteady numerical flow visualization techniques were applied to the entire unsteady data set of five rotor revolutions and exhibited flowfield features such as blade vortex interaction and wake roll-up. The unsteady blade loads and surface pressures compare well against those from flight measurements. Details of the method, a discussion of the resulting predicted flowfield, and requirements for future work are presented. Overall, given the proper blade dynamics, this method can compute the unsteady flowfield of a general helicopter rotor in forward flight.